Impacts of Potential Federal Government Shutdown on Aging Services
(Sept. 30, 2025) With the end of the federal fiscal year looming at midnight tonight, Sept. 30th, Congress has not yet come to an agreement on a continuing resolution (CR) to temporarily fund the government until new funding legislation can be passed and signed into law. On Sept. 29th, the U.S. Department of Health and Human Services (HHS) publicly released an updated contingency plan for fiscal year 2026 (FY26) outlining how essential government services will operate during a shutdown.
Our partners at LeadingAge National have reviewed the HHS contingency plan and lapse plans from the Centers for Medicare and Medicaid Services (CMS) and the Centers for Disease Control and Prevention (CDC) to anticipate how aging services may be impacted by a government shutdown. They have also reviewed the U.S. Department of Housing and Urban Development’s (HUD) contingency plan, which was last updated in 2023.
Notably, under the HHS plans, Medicare payments fall under mandatory spending and are therefore not impacted by a lapse in appropriations. While the Medicare Administrative Contractors (MACs), which are responsible for Medicare claims processing and payment, are impacted by a government shutdown, it is anticipated that processing and payment of Medicare claims would be a prioritized function addressed by staff who are exempt or excepted from furlough and have not been subject to a Reduction in Force (RIF).
More information is available from LeadingAge National here and here. Members are advised that the plans are intended to serve as a guide, but are not binding. LeadingAge National and LeadingAge NY will continue to monitor this evolving situation.